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NNPC petrol price without subsidy is N400/litre – Marketers

The lowest price the Nigerian National Petroleum Company Limited can sell Premium Motor Spirit, popularly called petrol, to marketers, assuming there is no subsidy, is N400/litre, it has been learnt.

The announcement was made by oil marketers on Sunday, and they also provided other justifications for the ongoing petrol shortage that had resulted in the protracted lines at filling stations across the country.

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They said that the Nigerian National Petroleum Company Limited, the only importer of the good, was finding it increasingly difficult to pay the PMS imports charges. They also revealed that the NNPC had been quietly shifting these fees onto depot owners.

As a result of this development, the price of the commodity at the pump has increased. It was discovered that depot owners, on their part, were also passing the fees to filling stations, which in turn passed them on to ultimate users of the product.Information Guide Nigeria

It was also reported that the Federal Government had covertly permitted depot operators to increase the ex-depot price of gasoline from the previously approved amount of N147/litre to roughly N185/litre.

The shortage of gasoline persisted on Sunday, at the time of this. Because there weren’t enough goods to sell, many retail establishments in Abuja were closed. The only option available to them was to buy goods from jerrycan-selling illegal marketers.

The same thing happened in some areas of the states of Nasarawa and Niger, according to oil merchants, who stated that the spike in the dollar was also a factor in the scarcity of PMS that was experienced in Nigeria.

The announcement was made by oil marketers on Sunday, and they also provided other justifications for the ongoing petrol shortage that had resulted in the protracted lines at filling stations across the country.

They said that the Nigerian National Petroleum Company Limited, the only importer of the good, was finding it increasingly difficult to pay the PMS imports charges. They also revealed that the NNPC had been quietly shifting these fees onto depot owners.

As a result of this development, the price of the commodity at the pump has increased. It was discovered that depot owners, on their part, were also passing the fees to filling stations, which in turn passed them on to ultimate users of the product.

“The dollar is affecting PMS purchase, something you were buying for about $15/tonne when the dollar was about N440 to N450, but currently the dollar is about N750 to N800. Definitely, the price of the product will increase,” a major marketer, who pleaded not to be named due to lack of authorisation, stated.

The official added, “You can buy a product, say $10/tonne from maybe Russia, it will get to Nigerian waters at that rate, but most of those mother vessels, as soon as they discharge into your own vessel, whatever rate you now pay will be international rates in dollar.

“The mother vessel has its limit, it has to be stationed at Atlas Cove. But the daughter vessel you are going to charge, which brings in the product, will be charged in dollars. They don’t take naira. So all these charges come in dollars.”

The source stated that these charges were currently hitting hard on the NNPC, as the oil company was finding it tough to bear the increased fuel imports’ rates.

“All vessels operate on international rates and it must be in forex. So as it is now, the rates are getting so high for NNPC to bear alone. Some of these charges have to be pushed to depots that are taking the products and they have to pass it on to consumers,” the oil marketer stated.

The source added, “The subsidised ex-depot rate for petrol from NNPC is about N147/litre, but tell me, which depot is selling at that rate today? I know somebody who said he bought from a depot at N182/litre. And he got it at this rate because he did bulk purchase, he bought about 20 trucks.

“And he bought it from one of the major marketing companies. So when you make a bulk purchase at N182/litre, then you can imagine what those who are buying one or two trucks will have to pay for the product.

It was also reported that the Federal Government had covertly permitted depot operators to increase the ex-depot price of gasoline from the previously approved amount of N147/litre to roughly N185/litre.

The shortage of gasoline persisted on Sunday, at the time of this. Because there weren’t enough goods to sell, many retail establishments in Abuja were closed. The only option available to them was to buy goods from jerrycan-selling illegal marketers.

The same thing happened in some areas of the states of Nasarawa and Niger, according to oil merchants, who stated that the spike in the dollar was also a factor in the scarcity of PMS that was experienced in Nigeria.

“This means that there is hardly any depot you can go to now that you can get products for less than N185/litre. And by the time you buy at N185/litre at the depots, why won’t they sell at N200/litre and above?”

This development was confirmed by the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, who stated that NNPC was currently finding it tough to continue subsidising PMS.JAMB portal

“The least that NNPC can sell petrol is over N400/litre to depots and not at N145/litre, but because of subsidy, which is becoming over-bearing on them, the oil firm has been struggling to subsidise,” he stated.

He added, “That is why you see the lapses. The government is looking for dollars to import this product and pay the contractors importing for NNPC, and it is also trying to subsidise PMS.”

Ukadike explained that the landing cost of PMS in Nigeria was about N450/litre, as he noted that subsidy on PMS was no longer sustainable.

“The government will not continue to be Father Christmas and cripple the economy. Subsidy must stop!” he stated.

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Agencies keep mum

Garba-Deen Mohammad, Group General Manager, Group Public Affairs Division, NNPC, did not answer to inquiries when reached. In fact, the NNPC has stayed silent on gasoline scarcity issues.

When contacted, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which regulates the downstream oil industry, remained silent.

The NMDPRA, like the NNPC, has been silent on this topic for the past week. The agencies of the Federal Government have agreed not to comment on the price of PMS in light of the product’s shortage and the resulting lines.

Billy Gillis-Harry, president of the Petroleum Retail Outlet Owners Association of Nigeria, told our correspondent that the crisis in the downstream oil sector will persist until the industry is deregulate.

“We have said it times without number that this issue will continue to drag as long as there is subsidy on petrol, which from all indications is no more sustainable. So the best thing is to stop it,” he stated.

Meanwhile, Ukadike also stressed that the continued payment of subsidy on petrol was taking a toll on not just the resources of NNPC but also on the Federal Government.

He said, “It is becoming increasingly difficult for them (NNPC). In fact, it is taking a toll on the economy generally. And even the Federal Government cannot contain it.

“So the best way out is just to allow people to be able to adapt to the non-subsidy regime in order to relax the pressure on the dollar and the government can then invest in other sectors.

“All these issues, including the subsidy regime, contribute to the scarcity we see across the country. The naira is crashing against the dollar, there is less supply of products, NNPC and the government are battling to subsidise petrol, why won’t there be scarcity?”NYSC portal

Subsidy gulps N6.88tn

The PUNCH exclusively disclosed last month that the administration of Nigeria’s President, Major General Muhammadu Buhari (ret. ), might spend no less than N10.976tn on gasoline subsidies between May 2015 and May 2023.

According to information gathered from NNPC and the Nigeria Extractive Industries Transparency Initiative, the research revealed that the government had already spent almost N6.88tn subsidizing the product.

During the 2015 election campaign, the president and his party, the All Progressives Congress, had opposed the fuel subsidy plan introduced by the Peoples Democratic Party administration.

In a September report to a House of Representatives committee analyzing the fuel subsidy regime from 2013 to 2022, NEITI stated that gasoline was subsidized during these years.

The Minister of Finance, Budget, and National Planning, Zainab Ahmed, informed members of the House of Representatives in October that the Federal Government anticipated spending N6.72 trillion on subsidies in 2023.

She stated, however, that the government’s second alternative was to retain fuel subsidies in place until June 2023, at a projected cost of N3.3tn.

All of the foregoing statistics revealed that the Buhari administration may spend no less than N10.976 trillion on gasoline subsidies between 2015 and June 2023.

IPMAN laments scarcity

Mike Osatuyi, National Controller, Operations, IPMAN, told The PUNCH on Sunday that its members still lacked the product and that the few gas stations that did have PMS were selling it for between N230 and N240 per liter.

“We don’t have products because we could not get to buy. There are currently no products at depots”, he said.

According to him, IPMAN currently has over 30,000 members nationwide and controls 70% of Nigeria’s retail establishments.

“Our members are in the villages and outskirts. Go everywhere, you will see our stations”, Osatuyi added.

A Depots Association of Petroleum Products Marketers Association of Nigeria source who pleaded anonymity said its members had paid for products but were not getting any from NNPCL.

“We have people who have paid but were not given. But the NNPC would say it has stock. Where is the stock and why don’t we have products in our tanks?”

The Chairman of IPMAN, Lagos Satellite Depot, Ejigbo, Akin Akinrinade, stated that the association’s members should obtain their supplies from the Pipelines and Product Marketing Company.

Since October 2021, he stated, members have paid more than N1 billion.

He stated, however, that the products had not yet been delivered, forcing members to shop at private depots for products while simultaneously repaying bank loans for their money with PPMC.JAMB Result

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Emediong Ekpe

Emediong Ekpe is a graduate of English. A professional Sports journalist/analyst, and a spoken word artist. He is passionate about decimating information and putting smiles on people's faces via news writing.

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